The Australian Securities Exchange (ASX) has made a historic move by welcoming its first Bitcoin exchange-traded fund (ETF) on Thursday, June 20. This development reflects the increasing trend of digital assets making their way into various global stock markets.
The VanEck Bitcoin ETF (ASX:VBTC) offers investors exposure to the VanEck Bitcoin Trust (BATS:HODL) without directly owning Bitcoin. This innovative ETF allows investors to buy and sell Bitcoin through traditional brokerage accounts on the ASX, streamlining the process compared to using cryptocurrency exchanges.
Andrew Campion, the general manager of investment products and strategy at the ASX, expressed enthusiasm about the introduction of the Bitcoin ETF, citing the growing demand for cryptocurrency assets among customers. He emphasized that this move makes it easier for Australians to invest in Bitcoin.
The VanEck Bitcoin ETF launched with an initial investment of approximately AU$985,000 (US$657,000) and serves as a feeder fund for the US$647 million VanEck Bitcoin Trust listed in the US. Each unit of the ETF is backed by a specific amount of Bitcoin, providing investors with a transparent and convenient way to participate in the cryptocurrency’s price movements.
This milestone comes amidst a broader acceptance of digital assets, with spot Bitcoin ETFs launched in the US earlier this year amassing a significant US$56 billion in assets. Hong Kong also allowed the trading of spot ETFs for Bitcoin and Ether in April, albeit with less interest.
With the VanEck Bitcoin ETF now live on the ASX, other local players like Sydney-based BetaShares Holdings and DigitalX (ASX:DCC, OTCQB:DGGXF) are gearing up for potential listings on the country’s main exchange. Crypto ETFs are already available on CBOE Australia, holding a collective US$90 million in assets.
The rapid rise of Bitcoin over the past nine months, nearly quadrupling in value since early 2023 and reaching a high of US$73,798 in March, underscores the growing interest in the digital asset. As the market continues to evolve, the introduction of a Bitcoin ETF on the ASX marks a significant step towards mainstream acceptance.
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